The Bush administration is planning a massive bombing campaign against Iran, including use of bunker-buster nuclear bombs, the New Yorker magazine reported.
Iran said Wednesday it has successfully test-fired a "top secret" missile, the third in a week, state-run television reported.
US President Bush dismissed as "wild speculation" reports that the administration was planning for a military strike against Iran.
The White House on Sunday sought to dampen the idea of a U.S. military strike on Iran, saying the United States is conducting "normal defense and intelligence planning."
Iran said it would test fire a powerful torpedo on Monday and more missiles on Tuesday as part of a week of wargames in the Gulf, a senior naval officer told state television.
Iran's foreign minister vowed that Tehran would press on with its controversial nuclear programme despite a call by the UN Security Council to suspend its activities.
The U.N. Security Council demanded Wednesday that Iran suspend uranium enrichment, the first time the powerful body has directly urged Tehran to clear up suspicions that it is seeking nuclear weapons.
A diplomatic solution is the best way to address the Iran nuclear issue, Beijing said after the UN Security Council demanded Teheran to suspend uranium enrichment work.
Russia blocked agreement on Monday on a UN Security Council statement aimed at quashing Iran's nuclear ambitions despite a ministerial meeting on Tehran's atomic programs, diplomats said.
Efforts to resolve the Iran nuclear crisis should focus on keeping the Non-Proliferation Treaty intact, Russian Foreign Minister Sergei Lavrov said on Wednesday.
The US House of Representatives pushed forward with a bill to impose sanctions on foreign firms doing business in Iran on Wednesday.
Iran on Thursday offered more access to UN inspectors if their watchdog agency, not the UN Security Council, dealt with its nuclear dispute with the West.